Confusion has continued to trail the newly implemented Nigeria Tax Act, with the Nigeria Revenue Service (NRS) debunking the official messages banks and fintechs sent to their customers regarding the collection and remittance of 7.5 percent value-added tax (VAT) on electronic banking services and other deductions.
Recently, banks and fintechs sent emails to their customers informing them of a directive from NRS asking them to charge 7.5 percent on electronic banking charges, including mobile money transfers, USSD transaction fees, and card issuance fees. The directive will take effect from Monday, January 19, 2026.
In a swift reaction on his X handle, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele said, “There is no VAT on the money you transfer. VAT is only charged on the banking fee or commission, which has been the case since VAT was introduced in 1993.”
Also NRS, in a press release titled, “VAT on banking fees was not introduced by the Nigeria Tax Act”, said, “The Nigeria Revenue Service (NRS) wishes to address and correct misleading narrative circulating in sections of the media suggesting that Value Added Tax (VAT) has been introduced on banking services categorically incorrect.
“VAT has always applied to fees, commissions, and charges for services rendered by banks and financial institutions under Nigeria’s long- established VAT regime.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new obligation on customers in this regard.
“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information.”
